Company culture is much more than just a corporate buzzword - in fact, it represents an integral set of values and practices that define a business, and consequently, its success. A recent study found that 46% of candidates place company culture at the top of their priorities when job hunting, but many prospective employees fall foul to false premises. Despite many businesses being quick to shout about their outstanding company culture, a handful of firms are showcasing style over substance, leading to many notice letters.
With this in mind, we’re delving into the topic of company culture, highlighting the good, the bad, and the ugly along the way.
So, what is company culture?
Company culture can be slightly elusive to define - and ‘good company culture’ can be even more challenging. At its core, it encompasses the shared values, beliefs, and practices that shape the identity of a business. Essentially, it's about the way things are done, and how they are done - and both of these actions determine how employees behave, make decisions, and collaborate. In this sense, it’s a very inter-connected concept to get to grips with, but it’s strongest when all of its practices and values are reflected across an entire organisational structure - not just in words, but through actions.
Why is company culture so important?
To understand why company culture matters as much as it does to candidates, we have to think about the deeper, long-term significance of these practices and values, both internally and externally, including:
Employee engagement and satisfaction
While great company culture can be used to attract new talent, it ought to be a means of investing in existing team members first and foremost. A positive company culture should foster an environment where employees feel engaged with their role. There are various ways to put this into play - from giving individuals autonomy, to devising team structures that facilitate progress, and celebrating achievements regularly (even the ‘little wins’) - these considerations will serve to boost overall motivation and satisfaction. When people feel valued, and they can see their efforts rewarded in the workplace, they are more likely to perform at their best.
Retention of top talent
It’s no surprise that a strong company culture will serve as a magnet for keeping hold of your high-value team members, and an optimised hiring process is partly shaped by the values that define a workplace. When employees feel aligned with the values and mission of a company, they’re more likely to want to stay and progress where they are rather than look elsewhere. Retention can be an extremely difficult metric to master, but businesses that commit to sustaining and evolving their company culture will ultimately have an advantage over those that don’t.
Productivity and performance
A healthy company culture encourages collaboration, communication, and teamwork, leading to increased productivity and enhanced performance. When employees share common values and goals, they work together more effectively.
There’s a caveat here though, as in the post-Covid world, a ‘healthy company culture’ in relation to employee performance is extremely subjective. After the pandemic, some firms shut up shop and retained their work-from-home approach, or they struck a middle ground with a hybrid model. While we’ve not seen a total extinction of office-first businesses, many CEOs have steered away from this more traditional structure, instead giving their team the choice of working in a way that suits them best - facilitating optimum levels of (yep, you guessed it!), productivity and performance! It works both ways though - if a firm has opted for a fully-remote model, but its employees feel as though they’re missing out on the human interaction that they value, then the company culture is out of touch with the people it should be representing.
Employee well-being
A recent study from Deloitte found that 64% of managers would consider leaving their job if it wasn’t supporting their wellbeing - but a considerate company culture can serve to ensure this isn’t the case. There are many complexities to consider when approaching mental health in the workplace, with the remote working model being one of many factors that make it harder to communicate these issues. While it's increasingly cited as a reason to leave a job, there are certainly ways that a positive company culture can avoid this outcome.
A supportive company culture often includes providing easy, direct access to initiatives that support employee well-being, even in remote and hybrid firms. Some of these provisions include:
Ensuring employees have a work-life balance
Providing access to mental health support such as CBT
Investing in specialist corporate wellness programs - from offering mental health first aid training, to holding mindfulness sessions.
As we’ve emphasised, these provisions should be readily accessible - if an employee has to jump through numerous hoops to receive the help they’ve reached out for, then this isn’t a great example of company culture in play. There are also ways to encourage active conversations around mental health and wellbeing, and remote firms have become trailblazers in doing so without having any actual face-to-face interaction.
Customer satisfaction
A strong company culture can reflect outward to the customers that it is serving. When employees believe in the company's values and mission, they are more likely to go the extra mile to provide exceptional customer service, which, in turn, leads to higher customer satisfaction and loyalty. This customer-centric focus
Corporate social responsibility
Company culture is also a key facet for communicating the values and causes that matter to a firm - a concept that is better known as corporate social responsibility. The business world doesn’t exist in a vacuum, and against a backdrop of the growing climate crisis, along with worldwide socio-economic disparity, corporates have the opportunity to take a stance. Gesture politics won’t suffice, so firms that want to be clear on their drive to support key causes should weave their commitment through their company culture. From charity fundraising, to securing B Corp certification, there are plenty of ways that businesses can take a proactive stance on matters that stretch far beyond themselves.
Company culture reaffirms purpose
Having a clear-cut company culture is a business’ north star. These values guide firms throughout their entire operations, acting as a sturdy foundation for navigating challenges in the business environment. It serves as a constant reminder of why the business exists, what it strives to achieve, and what it wants to do differently! This sense of purpose can be particularly motivating for employees, helping them understand how their daily efforts contribute to the larger goals of the company.
How to build company culture the right way
Now that we've established the importance of company culture, the question arises: How can you build and sustain a positive example that benefits your company in the long run?
Define your values
Clearly articulate your company's values and ensure everyone understands and embodies them - concentrate on the qualities that stretch beyond your employee benefits package.
Lead by example
Company culture starts at the top - leaders must demonstrate their own individual commitment to these wider objectives. .
Communication is key
Foster open and transparent communication within the organisation.
Empower employees
Give employees the autonomy and tools they need to contribute to the culture.
Celebrate achievements
Acknowledge and celebrate successes, both big and small.
Continuous evaluation
Regularly assess the culture and make adjustments as needed.
Company culture shouldn’t be seen as a luxury - it’s a necessity in today's professional world. There’s never a bad time to check in on the culture your business has cultivated, and how it contributes to your overall success, especially if you’re currently looking for new candidates.
We help employers to communicate their company culture effectively through our hiring services, ensuring that you find the right talent to facilitate your growth ambitions. We're a proud recruiter for digital marketing, and we also offer HR recruitment services as well as leading PA recruitment support. Get in touch with Runa Recruitment, a trusted recruitment agency in London, and create a more meaningful recruitment process with our guidance.